British Steel owner itching to invest but Boris green agenda halts plans
The government s commitment to decarbonisation means that Jingye is reluctant to put huge sums into blast furnaces
11:41, 17 FEB 2021
Huiming Li, chief executive of Jingye Group, at British Steel s Scunthorpe works where he has promised big investment
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In the meantime, that £1.2bn is burning a hole in British Steel’s pocket.
Some might think that Jingye is suffering from buyer’s remorse since agreeing to buy the firm in late 2019. The Hebei-based conglomerate, which makes steel in its home nation, was hailed as a saviour along with founder Li Ganpo when it won the bidding to take on British Steel.
The company had collapsed under previous owner Greybull in May 2018, putting the future of 4,000 employees and several times that in the supply chain in doubt.
British Steel’s place as a strategic asset in UK industry meant it was taken into state hands through the Official Receiver while a buyer was sought, with the Government covering losses of £1m a day.